The news is a huge disappointment to Beckham, who was included in the original 35-man long-list, and a diplomatic disaster for Pearce, whose decision came as a surprise to the British Olympic Association.

Ryan Giggs, Craig Bellamy and Micah Richards have been selected as the three over-age players, with Pearce telling Beckham that the Manchester City defender is the player who directly benefits from his exclusion.

Having included Beckham in the long-list and then ditching him after twice travelling to the United States to watch him play, Pearce is vulnerable to the charge of disrespecting a player who has represented England 115 times.

The coach has also courted controversy by turning to Richards, who refused to join the stand-by list for Euro 2012 but appears ready to answer the Olympic call.

Beckham had been desperate to represent his country as one of the over-age players, but will now not receive the international swansong he craved. He will however be offered a role in the Olympics by Sebastian Coe, who described him as London’s “No 1 supporter” on Thursday, and is set for an appearance in the final stages of the torch relay or the opening ceremony.

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In a statement, Beckham, 37, said: “Naturally I am very disappointed, but there will be no bigger supporter of the team than me. And like everyone, I will be hoping they [Team GB] can win the gold. As a Londoner, I was really proud to have played a small part in bringing the Olympics to my home town as part of Seb’s team, and I can’t wait for the Games to begin and enjoy every moment along with the rest of Great Britain.”

In a transatlantic call late on Wednesday night Pearce told Beckham that he was being omitted in favour of Richards because, with Tottenham’s Kyle Walker and Chris Smalling of Manchester United ruled out by injury, he required more defensive cover.

Pearce was in the process of contacting all the players selected for his squad on Thursday, and is scheduled to announce his full list of 18 plus four stand-by names on Monday.

<noframe>Twitter: Gary Lineker - Their are arguments for and against DB selection. What i don't understand though, is why string him along by including him in a short list?</noframe>

Tottenham’s Gareth Bale, Arsenal’s Aaron Ramsey, Tom Cleverley of Manchester United and Chelsea duo Daniel Sturridge and Ryan Bertrand are all thought to have made Pearce’s final squad. As of last night, the BOA, which ultimately approves selection, had received no formal notification of the selected players. The Football Association is likely to inform the BOA of selections on Friday, but the handling of the process has led to frustration among Olympic officials.

Beckham was an ambassador for the bid and latterly for the Games themselves, and has made a hugely positive impression on those who have worked with him. He was part of the London handover ceremony at the end of the Beijing Games, and he was involved again last month, carrying the Olympic flame on its arrival in the UK. A bandwagon had built behind Beckham’s inclusion amid suggestions that his presence would drive sluggish ticket sales. In the event, all of Team GB’s group games are all but sold out.